Business Services Business Services Finance and Accounting

Question 1

What does 'accounts payable' refer to in a business context?

Accepted Answer

Money owed by the company to suppliers

Answer

Money owed to the company by customers

Answer

The company's total revenue

Answer

The company's net profit

Question 2

Which financial statement shows a company's revenues and expenses over a period?

Accepted Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Answer

Statement of equity

Question 3

What is 'depreciation' in accounting?

Accepted Answer

The allocation of an asset's cost over its useful life

Answer

An increase in asset value over time

Answer

A type of tax deduction only

Answer

The total debt of a company

Question 4

Which ratio measures a company's ability to pay short-term obligations?

Accepted Answer

Current ratio

Answer

Debt-to-equity ratio

Answer

Price-to-earnings ratio

Answer

Return on equity

Question 5

What is 'working capital' in business finance?

Accepted Answer

Current assets minus current liabilities

Answer

Total long-term investments

Answer

Annual revenue minus annual expenses

Answer

Total equity of the business

Question 6

What does 'EBITDA' stand for?

Accepted Answer

Earnings Before Interest, Taxes, Depreciation, and Amortization

Answer

Estimated Business Income Tax and Deduction Amount

Answer

Equity Backed Investment Total Dividend Allocation

Answer

Earnings Before Internal Tax and Depreciation Adjustment